Strong Cruise Demand Drives Cruise Companies to Raise Profit Forecast Again

Carnival Corp raised its profit forecast for the second time this year, attributing the increase to higher prices for its cruises and continued demand from Americans. The company’s U.S.-listed shares saw a 6.71% rise to $17.48 after falling more than 11% earlier in the year. Record bookings for 2024 contributed to the company’s strong momentum, allowing them to increase ticket prices and offset rising operating costs.

The company reported earnings of 7 cents per share for the second quarter, surpassing analysts’ expectations of a 2 cent loss. Carnival’s total customer deposits reached a historic high of $8.3 billion, with a record of $1.1 billion more than the previous high. Despite Carnival’s net debt remaining high at $27.7 billion, the company prepaid $1.6 billion in debt in the second quarter, citing strong liquidity.

Carnival now expects adjusted earnings per share of about $1.18 for 2024, an increase from the previous forecast of 98 cents. Competitors Royal Caribbean Group and Norwegian Cruise Line have also raised their annual profit targets in recent months. The cruise line industry has seen a surge in bookings as travelers seek new experiences and activities at affordable prices, supporting companies like Carnival in increasing profits.

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